Comprehensive Income

12 Months Ended

Dec. 31, 2020

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. The components of other comprehensive income and related tax effects are as follows:


	Year Ended December 31,
(in thousands)	2020		2019		2018
Unrealized holding gains (losses) on available for sale securities before reclassifications	$	15,803	$	24,471	$	(17,057)
Amounts reclassified out of accumulated other comprehensive income:
Realized gains on debt securities	(7)		(110)		(207)
Adoption ASU 2016-01	—		—		62
Adoption ASU 2018-02	—		—		(425)
Total amounts reclassified out of accumulated other comprehensive income	(7)		(110)		(570)
Unrealized holding gains (losses) on available for sale securities after reclassifications	15,796		24,361		(17,627)
Tax effect	(4,670)		(7,202)		5,193
Unrealized holding gains (losses) on available for sale securities, net of tax	11,126		17,159		(12,434)
Change in unfunded status of the supplemental retirement plans before reclassifications	645		(6,745)		762
Amounts reclassified out of accumulated other comprehensive income:
Amortization of prior service cost	(55)		(54)		(54)
Amortization of actuarial losses	9,309		408		510
Adoption ASU 2018-02	—		—		(668)
Total amounts reclassified out of accumulated other comprehensive income	9,254		354		(212)
Change in unfunded status of the supplemental retirement plans after reclassifications	9,899		(6,391)		550
Tax effect	(2,927)		1,889		(162)
Change in unfunded status of the supplemental retirement plans, net of tax	6,972		(4,502)		388
Change in joint beneficiary agreement liability before reclassifications	(596)		—		426
Tax effect	—		—		—
Change in unfunded status of the supplemental retirement plans, net of tax	(596)		—		426
Total other comprehensive income (loss)	$	17,502	$	12,657	$	(11,620)

The components of accumulated other comprehensive income, included in shareholders’ equity, are as follows:


	Year Ended December 31,
(in thousands)	2020		2019
Net unrealized gain (loss) on available for sale securities	$	19,183	3,387
Tax effect	(5,671)		(1,001)
Unrealized holding loss on available for sale securities, net of tax	13,512		2,386
Unfunded status of the supplemental retirement plans	(1,294)		(11,193)
Tax effect	382		3,309
Unfunded status of the supplemental retirement plans, net of tax	(912)		(7,884)
Joint beneficiary agreement liability, net of tax	(320)		276
Accumulated other comprehensive loss	$	12,280	$	(5,222)